Help Save Suppose a corporation has two subsidiaries, one of which is unregulated and sells all of its output to the other, regulated subsidiary. Permitted profits at the regulated subsidiary are equal to 10 percent of total costs. The initial profit picture for the subsidiaries is provided in the table below: Unregulated Subsidiary Regulated Subsidiary Total $ 650,000 N/A revenue $ 350,000 $300,000 $1,000,000 $ 100,000 Total costs Total profit If the unregulated subsidiary doubles its selling price to the regulated subsidiary, what are the new profits at Instructions: Enter your responses as a whole number. (a) The unregulated subsidiary? profit = $ (b) The regulated subsidiary? profit = $ < Prev 8 of 8 INext DOLL -> & 23 24 8. *00 w/ %S4

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Suppose a corporation has two subsidiaries, one of which is unregulated and sells all of its output to the other, regulated subsidiary.
Permitted profits at the regulated subsidiary are equal to 10 percent of total costs. The initial profit picture for the subsidiaries is
provided in the table below:
Unregulated Subsidiary
Regulated Subsidiary
Total
$ 650,000
N/A
revenue
$ 350,000
$300,000
$1,000,000
$ 100,000
Total costs
Total profit
If the unregulated subsidiary doubles its selling price to the regulated subsidiary, what are the new profits at
Instructions: Enter your responses as a whole number.
(a) The unregulated subsidiary?
profit = $
(b) The regulated subsidiary?
profit = $
< Prev
8 of 8
INext
DOLL
->
&
23
24
8.
*00
w/
%S4
Transcribed Image Text:Help Save Suppose a corporation has two subsidiaries, one of which is unregulated and sells all of its output to the other, regulated subsidiary. Permitted profits at the regulated subsidiary are equal to 10 percent of total costs. The initial profit picture for the subsidiaries is provided in the table below: Unregulated Subsidiary Regulated Subsidiary Total $ 650,000 N/A revenue $ 350,000 $300,000 $1,000,000 $ 100,000 Total costs Total profit If the unregulated subsidiary doubles its selling price to the regulated subsidiary, what are the new profits at Instructions: Enter your responses as a whole number. (a) The unregulated subsidiary? profit = $ (b) The regulated subsidiary? profit = $ < Prev 8 of 8 INext DOLL -> & 23 24 8. *00 w/ %S4
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